Sec. 8109.
(1) A person who originates an entitlement order to a securities intermediary warrants to the securities intermediary both of the following:
(a) The entitlement order is made by an appropriate person, or if the entitlement order is by an agent, the agent has actual authority to act on behalf of the appropriate person.
(b) There is no adverse claim to the security entitlement.
(2) A person who delivers a security certificate to a securities intermediary for credit to a securities account or originates an instruction with respect to an uncertificated security directing that the uncertificated security be credited to a securities account makes to the securities intermediary the warranties specified in section 8108(1) or (2).
(3) If a securities intermediary delivers a security certificate to its entitlement holder or causes its entitlement holder to be registered as the owner of an uncertificated security, the securities intermediary makes to the entitlement holder the warranties specified in section 8108(1) or (2).
History: Add. 1998, Act 278, Imd. Eff. July 27, 1998
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 8 - Investment Securities (440.8101...440.8601)
174-1962-8-1 - Part 1 Short Title and General Matters (440.8101...440.8116)
Section 440.8101 - Uniform Commercial Code—investment Securities; Cited As.
Section 440.8102 - Definitions.
Section 440.8105 - Notice of Adverse Claim.
Section 440.8108 - Warranty to Purchaser.
Section 440.8109 - Warranty to Securities Intermediary.
Section 440.8110 - Jurisdiction.
Section 440.8111 - Rule Adopted by Clearing Corporation; Effect.
Section 440.8112 - Reaching Interest of Debtor.
Section 440.8113 - Sale or Purchase of Security; Enforcement of Contract or Contract Modification.
Section 440.8114 - Action on Certificated Security Against Issuer; Rules.